LANDBANK seeks to raise at least P5 billion via dual-tenor sustainability bond offer

LAND BANK of the Philippines (LANDBANK) wants to raise at least P5 billion from a dual-tranche sustainability bond issuance, marking its return to the domestic debt market after five years.

The state-run lender will issue peso-denominated, fixed-rate ASEAN Sustainability Bonds branded as Agriculture, Sustainability, Environment and Socioeconomic Development (ASENSO) Bonds with tenors of 1.5 and three years, it said in a statement on Monday.

“The ASENSO Bonds offer investors a unique opportunity to earn competitive, fixed returns while contributing to meaningful projects that benefit communities and the environment. With rising demand for sustainable investments, there is no better time to invest in initiatives that generate positive social and environmental impact while supporting long-term national growth,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said.

The public offer period will run from Jan. 28 to Feb. 26 via the LANDBANK Mobile Banking App. The notes are scheduled to be listed on the Philippine Dealing & Exchange Corp. on Feb. 16.

The bonds are being sold for a minimum investment of P10,000 and in increments of P10,000. Interest on the bonds will be paid quarterly starting from the issue date and will be subject to final withholding tax.

“Proceeds from the issuance will be allocated exclusively to eligible green projects, including renewable energy, energy efficiency, green buildings, clean transport, sustainable water management, and pollution prevention, as well as social projects such as food security, affordable housing, health, education, access to essential services, employment generation, and broader socioeconomic development,” LANDBANK said.

The state-run lender has tapped China Bank Capital Corp. (Chinabank Capital) as the sole issue manager for the bond offering, with LANDBANK and Chinabank Capital acting as the selling agents.   

“The issuance is aligned with LANDBANK’s Sustainable Finance Framework, which integrates environmental, social, and governance principles into the Bank’s operations in support of the Philippine Development Plan, the Philippine Sustainable Finance Roadmap, and the United Nations Sustainable Development Goals,” the bank said.

It added that the Securities and Exchange Commission (SEC) has confirmed that the bonds fulfill the requirements under the ASEAN Sustainability Bond Standards and the SEC ASEAN Sustainability Bond Circular.

LANDBANK last tapped the domestic bond market in November 2020 as it raised P5 billion via the sale of two-year fixed-rate ASEAN Sustainability Bond with an interest rate of 2.5872% per annum.

The state-run bank’s net income climbed by 41.79% year on year to P35.64 billion in the first nine months of 2025. — Aaron Michael C. Sy